Inasmuch as less than 7% of the households in SD county can swing a $4,800 monthly PITI payment I’m thinking the lighter interest load on jumbos is basically meaningless to pricing. Bear in mind, the logical alternative to a $700k home is the $600k home located next door that’s in foreclosure. It’s in foreclosure because it’s borrower could never afford the 5.5% fixed rate that was in effect when he bought, much less the 6% rate you’re talking about now, two years later.
